Whilst most business owners can read their profit and loss and can see they’re making money, they may not understand why there is a gap between profit and cashflow. We can use your data to gain powerful insight into your metrics which will enable you to see exactly where you are, and pave the way to where you want to be.
Universal vision and goals for business
Whilst all owners have different visions and goals for their business, three ultimate aims are almost universal. These are:
- High profit levels
- Strong free cashflow (to either grow the business, fund your lifestyle, or build your wealth)
- Maximise the value of the business
These go hand in hand. Higher profits lead to better cashflow and an increased value of the business.
What is the most important indicator of business success? Strong free cashflow. Why?
Verne Harnish says it best:
“You can get by with decent people, decent strategy, and decent execution, but not a day without cash. If you run out of cash—it’s game over.”
What you’re missing from traditional financial statements and financial reporting
Traditional financial statements and financial reports contain a lot of useful information, however they don’t easily show you how cash is flowing.
Commonly there is only one line for the most critical cashflow element (revenue) and thirty lines for expenses. Also, there is no section of the financials to show the largest expense in a business – the cost of the missed opportunity. How much more revenue (or profit) could you have made if you had the full production or use of all your capacity in the business?
Make better business decisions with business insights reporting
Business insights reporting is designed to help you understand your numbers so you can make better decisions to drive the growth, profitability, and cashflow for your business. This level of data and insight cannot be found in traditional financial statements and financial reporting.
Business insights reporting presents your data to give you a clear and concise picture of how your business is operating.
What does business insights do for you?
- Shows data in a clear and graphic way
- Combines business ratios that are used by banks and financial analysts
- Focuses you on the key drivers of profitability and cashflow
- Shows you trends over time and the impact of these
- Identifies areas for you to work on so you don’t run out of cash
- Helps you to see the cost of missed opportunities
- Helps you ask the right questions and make better decisions
- Allows you to see how changes in three key areas will impact on your profits and cashflow:
Using your data with business insights reporting, we generate a detailed report containing:
- Graphs of the business performance
- Key ratios
- The Power of One model
- A business value indicator report
- How fast your business can grow using its own cashflow
Working with one of our advisors, we can help you to review and understand your results and focus on just a few key items. This will allow you to develop a deep understanding of what drives them, and what decisions need to be made for business improvement.
How can Walsh Accountants help?
Our goal is to make your numbers easy to understand so they speak to you. Only through understanding and measuring processes can you make improvements.
Using our tailored business insights reporting, this is exactly what we aim to achieve.
If you’re interested in discussing how business insights reporting can help you and your business, contact us today for a complimentary discussion based on your personal circumstances.